Skip to main content

tv   Squawk Alley  CNBC  February 11, 2015 11:00am-12:01pm EST

11:00 am
to a euro leaders meeting later in the week. it's a busy one. the dow down 70 points and we'll send it over to carl for "squawk alley." >> thanks a lot. 8:00 a.m. at apple headquarters in cupertino, california, 11:00 a.m. here on wall street. "squawk alley" is live. ♪ ♪ welcome to "squawk alley" for a wednesday. on a day where the broader market is down but techs have things that are working. nick joins us this morning, columnist for "the new york times" as always jon fortt, kth kayla tausche on a busy day. becoming the first u.s. company
11:01 am
ever to close with a market cap over $700 billion and just for comparison, exxon is the second most valuable company worth only $385 billion. shares once again opening at an all-time high this morning. as you can see 123.89 after all the news about the bond sales and now this conference that tim cook spoke at, goldman sachs conference, hinting the company could, in fact, give cash back to investors, quote, by and large, my view is for cash that we don't need, we want to give it back. we are not hoarders. jon fortt, is that true? >> i think it is. this is not steve jobs' apple. steve jobs was a hoarder and he had a fraction, small fraction of the cash that apple has now. tim cook has a different outlook on it. it's no secret i think from just a technology perspective strategy perspective we are living in a unique time. the dominance of apple, the way it's executed the vision, but the question i think is for the next phase. they've sold so much hardware, i don't know that there's the
11:02 am
scale of growth on the horizon at the iphone has shown, tim cook is implying he thinks it's there with the iwatch. i think the question is can they to it again with a different business model for services on top of these ios devices. that's really hard to do. >> don't tell tim cook he can't grow. at the same conference yesterday he said the law of large numbers does not apply to apple. it's dog ma, the company can continue growing and because it's big doesn't mean it will be stunted. they had a blowout quarter. seems hard to believe that growth at least at that pace can continue going forward, but do you believe that it is dogma, the large numbers? >> you know, it's funny. i -- you guys thinking that apple was going to announce or tim cook would announce they would build a store on the the moon. they have enough money to do it. the money they have is insane. the numbers are continuing to grow. one of the things we've seen last quarter with iphone is that china is a market that is going to continue to expand for many,
11:03 am
many years. there are still several billion people around the world that don't have smartphones. everyone is going after that. while iphone is a luxury product, it's still something that everyone wants. and, you know, when we looked at china originally, we didn't think as many people were going to be excited by the phone. you have all of the competitors out there with android and, you know, the apple clones and so on, but people want these apple devices and they will continue to want that for the neck couple years. >> they continue to make news. this deal yesterday that they're going to build this $850 million energy farm in a deal for solar. tim cook talked about that as well. take a listen to this. >> we are building or partnering with first solar to build a solar farm in monterey county. it's enough to provide renewable energy for all of our new campus. we expect to have a very significant savings because we have a fixed price for the
11:04 am
renewable energy. >> talk about a company, jon, thinking way ahead. >> apple is at the scale now where the things that they do internally to save money, to be efficient, actually deliver an enormous return. so when they do these solar projects and fuel cell projects at their data centers that's huge. when they're doing this project to offset their energy expenditure for their new headquarters which is going to be guy gantic, the spaceship headquarters, second building in complex in cupertino, that's huge there. big enough to create their own markets, not just in product, but also in infrastructure. so now there are calls for other companies to follow their lead but not a lot of other companies have $850 million to spend on something like this. >> nick, there was some comments earlier in the week that we're witnessing on a broad scale and largely when it comes to the cloud, over investment, malinvestment driven by low rates. no better example of low rates than apple. are they in any danger of that?
11:05 am
>> it's interesting, we talk about apple and their numbers and, you know, it's a $700 billion company. if you look back in 1999, microsoft was about a $620 billion company and we all saw what happened there. i think apple while it's at its peak doing amazingly, i'm not going to poo-poo what they've done so far but they have to be careful because everyone hits this peak and kind of get comfortable and things can go wrong. i, you know, we talk a lot about services with apple. it's the whole thing. it's hardware, software, services, and given the number of people that have purchased devices over the past couple years, i think they're going to have to start to look for a new segme segment, a new market to go after if they want to continue to try to aim for a $1 trillion company. >> certainly they're not afraid to start tip towing into new categories. let's go tesla, reporting earnings after the bell. the stock up 450% in the last twos years. and as they look to expand the company is adding new chargers at resorts, restaurants, hotel across the country. phil lebeau is live in chicago.
11:06 am
he's been testing out insane mode all morning long. hey, phil. >> hey, carl. we're going test it out again live with you in the car. this is the model sp 85d. essentially what you get here is the performance edition of the model s. when they rolled it out everybody said that's great for performance edition but there's a side benefit and that boog th being that this is a vehicle that does well in driving in the slow and cold weather. so you know i've lost ifb so we will make this go as long as we can. if you have to cut out you have to cut out. video of us driving yesterday in wisconsin. bob pollic my photographer is in here right now and we're going to give you a sense of what also makes this car stand out. and when you look at the control panel here, see this right here. acceleration mode. is it in sport or insane? what we're going to show you is what happens when it's in insane. loop around this way.
11:07 am
we're going to hit insane. we're sitting still right now. here we go. there you go. little 0 to 60 in 3.2 seconds, a taste of how quickly the p 85d accelerates. the big selling point with this vehicle, the insane mode but also in addition, the fact that it does have better performance than the original model s when it comes to cold weather and driving in cold weather. about a third of tesla sale are in cold weather states hoping to improve that with the p 85d. so again, guys, i can't hear you, lost my ifb. we'll give you one sense of the 0 to 60 and what happens as quickly as you accelerate. and bob pollack tries to hang on to the camera. back to you. tesla earnings after the bell. >> i can just picture bob trying to sit still. you can see, obviously, the gs you're going under or the fraction of a g at least. thanks, phil. speaking of it tesla, according
11:08 am
to elon musk, he's prepared to fire a lot of overseas executives after sales in china came in well below the company's expectations and nick, it does remain sort of a supply story, does it not? >> it remains a supply story but also remains a bit of a political story. there's a lot of -- they're having a lot of trouble over there partially because of supply. i think they, you know, there's a lot of people that have purchased -- i love how i call them devices -- purchased cars here and been having problems getting supply over there. also the politics of it where china doesn't want people buying cars made in america. and that's been pretty evident. they've -- there are tax cuts people get and incentives over there that they get for cars made in china but they don't necessarily get them for teslas built in america. >> there aren't enough charging stations either. there are a whole host of issues, but it does seem with all of the forces at work in a company like tesla, i'm hearing believers in the stock more and more saying, i'm not willing to take my money out until 2017 at
11:09 am
least. this has always been a longer term story but a short-term story for traders and i'm wondering if you think that the company and its business model will bear fruit between now and then? >> absolutely. we have the suv that's going to be coming out in the next year or so. you have the less expensive model will come out which will be huge. the fact that a tesla that's going to be around $30,000 is going to be on the market i think is going to be a game changer and a big competitor to, you know, places like bmw and mercedes that have the other inexpensive electrical cars that feel cheap when you drive them, they don't feel like a tesla. as far as china goes, if elon musk is saying he's going to fire people and go over there and sort it out, i kind of believe him. >> stock under some pressure, of course, right now. we'll look for guidance on the model x and i think the estimate is 56 cents. we'll see what happens tonight. finally, nick, talk social media. you've been saying of all the social media companies out there, facebook is scared of no one in particular. i think you told us once that
11:10 am
they've been smart in that they are -- they've been quick to buy the next big thing before it could get to them? >> well they are afraid of someone in particular and that is snapchat. you know, snapchat is -- i've written a couple stories about them in the last month or so. growing at a rate that, you know, is kind of equal to where facebook was in its early years and twitter and so on. kids absolutely love this platform and they love it because it's efemoral and goes against the business model of what facebook and twitter and all those guys do. they essentially rely on people putting things on-line that stay there forever and ever and they can place ad next to them. what snapchat is doing, hey, here's a thing you can put on our application, it lasts for 24 hours and then poof it's gone forever and kids love that. >> nick, the one thing that facebook seems to respect more than anything is growth and engagement at the same time. at one point there seemed to be maybe afraid of twitter not so
11:11 am
much anymore. why might this be different in does snapchat have something other social media players haven't had that have fallen by the wayside as facebook has powered forward? >> well, it's a great question. i think the way to look at this is, if you think about the way all of us, the way we as adults grew up, we grew up in a world where everything was private. and then along came social media and there was this thing you could be public and exciting and everyone jumped on it and i can share things with my friends all over the place. teens have grown up in a world where everything was always public. along comes snapchat and the first time ever they can be private with their friends and that is essentially what the fundamentals of this whole platform is about and why kids love it. they can sharing something with their friends and parents don't see it. don't have to worry about an aunt or uncle getting them in trouble or something like that. it goes against the entire model of what facebook is. it's not like facebook could say hey, we're going to become ephemeral like snapchat and let you delete things. it's not the way it works.
11:12 am
like a car company becoming a bicycle company. two different things. >> there's this expectation, nick, they could do a lot more with messenger as a standalone platform and ostensibly they'll try to as they work to get more people there and start building it out with david marcus. i'm wondering what you see is the more likely scenario, facebook being able to build a successful competitor to snapchat after multiple times trying and failing or facebook going to snapchat saying we'll give you $10 billion if that's what you're worth and want. >> i think mark zuckerberg could go up to evan spiegel of snapchat and say we'll give you $100 billion and office on the moon and he would say no. he fundamentally does not like facebook. he has said publicly before that he thinks that facebook has kind of ruined his childhood because as a teenager he put things on there and they live there forever and why he wants to build snapchat as a competitor. you know, a lot of the times with these guys it's a game. it's about who's going to win and so on.
11:13 am
i think, you know, of all the ceos that i have met over the last several years that run these kinds of social start-ups no two more alike than spiegel and zuckerberg and it's going to be a very interesting battle over the next couple years. >> nick, always good to see you. such great stuff every time. talk to you soon. nick bilton of the "new york times." >> we want to bring you an update on a story that has been at the forefront of the media world for the last few weeks. yesterday, nbc news announcing that it is suspending brian williams for six months without pay effective immediately. williams admitted last week that he misrepresented events about coming under fire while flying in a chinook helicopter covering the iraq war. in a statement, nbc universal's ceo steve burke said, quote, brine has jeopardized the trust millions of americans place in nbc news. his actions are inexcusable and the suspension is severe and appropriate and burke says williams deserves a second chance and we are rooting for him. brian has shared his deep remorse with me and committed to
11:14 am
winning back everyone's trust. nbc news continues an internal investigation. in the meantime lester holt will substitute anchor the nightly news for the immediate future. this hour the markets are mixed. the dow down by about 29 points. the s&p is slightly positive. nasdaq up by about 17 points. both the s&p and nasdaq for the year the dow about the breakeven point. we haven't seen more two days of triple digit moves for any of the major averages so far this year. of course focus of meeting of all the euro group leaders that is happening this week. shares of pepsi rallying after profit and revenue topping analyst estimates. the company did expect a challenging and volatile macro environment for the rest of the year but that stock is up about 2.3% largely on the back of really strong revenue growth organically in the face of weakness at its competitors. shares of aol slipping after revenue coming in below expectations. take a look at that stock, down nearly 12%.
11:15 am
the company saying revenue was impacted significantly by forp exchange issues. seems like a broken record to be pointing to for ex but long list of companies caught in the cross hairs. >> tough shift to licensing, obviously, and global ad revenue up 8 but big change in the business model. >> after showing up on tablets a year ago, microsoft outlook finally available for your mobile phone. is it any good? walt mossberg will join us with his review later on. is samsung hijacking your tv with its advertisements? a look at the latest complaint at samsung's smart tvs. why is bit torn a company known for piracy jumping into the original content game. one of the top executives will tell us in a moment. "squawk alley" continues. don't go away.
11:16 am
yoyour friends have your back. your dog's definitely got your back. but who's got your back when you need legal help? we do. we're legalzoom, and over the last 10 years, we've helped millions of people protect their families and run their businesses. we have the right people on-hand to answer your questions, backed by a trusted network of attorneys. so visit us today for legal help you can count on. legalzoom. legal help is here.
11:17 am
11:18 am
bittorrent. why is bittorrent a company known for piracy, jumping into the original content game? it's an interesting story and our julia boorstin went straight to the source to find out. she's live in l.a. hey, julia. >> hey, kayla. known for pioneering file sharing technology, bittorrent is making a push to become a content company with facebook backer excel partners and other vcs report over $40 million with the company this could help position it for a sale or an eventful ipo. this morning the company announcing the launch of bittorrent originals, starting
11:19 am
with six series from indy producer rap head i-studios over the next three years. the first a show called "children of the machine" launches this fall. originals exclusive for 30 to 60 days, free and ad supported with a paid premium option ad-free. this is all part of the company's push to be a legal provider of content. bittorrent bundle direct to fan publishing platform pays artists 90% of revenue. it claims to offer over 2 million licensed pieces of mostly music contents from the likes of madonna and lingcon park. the scale 170 million years and appeal to men 14 to 25 will draw ad dollars. >> we partnered with some of the biggest brands in the world. people seeing this as one of the only ways to genuinely reach a global audience of hundreds of millions of people on the internet. i think you can expect to see a lot more blue chip advertisers coming on board over the next 12
11:20 am
months. >> bittorrent certainly faces strong competition from industry giants including hulu, netflix, amazon, and youtube. these days seems distribution platforms can't afford not to have their own ex cluesive content. >> julia boorstin in l.a. when we come back surprise ads may be a new thing if you have a samsung smart tv. we'll explain just exactly what that means in a moment. "squawk alley" will be right back. pation, diarrhea, gas, bloating? yes! one phillips' colon health probiotic cap each day helps defend against these occasional digestive issues... with 3 types of good bacteria. live the regular life. illips'
11:21 am
11:22 am
11:23 am
forget surprise endings, now sitting down for a movie in front of your samsung smart tv could mean surprise ads. viewers are reporting this week that 20 to 30 minutes into watching a movie, audio list pepsi ads have been popping up on their screens. so far the ads have appeared on the plex media app center and australia's fox tv. these are third-party apps they're using. unclear if it's exactly due to something that samsung is doing. if i'm a consumer i say this is
11:24 am
fine as long as i'm getting money back on my bill, me thinks that's not what's happening. >> samsung is inserting the ads probably not. it's a risky gam but once you start messing with people's eggs persons if they buy a tv it's big and be immersed and throwing ads where they don't expect them, that's more than risky. >> happens on your phone increasingly. i guess people think the tv is sacred. >> you pay that much money -- >> hang it on the wall of your house. >> and paid to see the movie at that point having ads inserted i don't know. >> brave new world. brave new world probably in the next few hours and days in europe as we await the outcome of the meeting, simon hobbs. >> approaching crunch time for the greek. a hesitation, prabs, on buying stocks at the moment as the finance ministers gaths gather to confront the greeks. people hardening their positions going into this. saw the greek prime minister last night in the speech
11:25 am
suggesting that it was little greece playing a bigger role in europe now and, of course, wolfgang schaeuble, the german finance minister say it's over for greece if they don't complete on what's the agreement that's already on the table. this is the picture in brussels a few moments ago as those 19 gather along with, of course, the head of the ecb and the head of the imf. deutsch bank doesn't feel close enough for them to midnight to do a deal. there isn't sufficient stress in the market to push them together. as far as the greek banks are concerned we're in negative territory. the banks going up and down, small market caps, fitch and s&p have warned on their liquidity situations as a result of potentially people withdrawing further funds from the greek banks. let me show you the timetable because a lot of people don't think we're going to get a deal today. this is what's happening in europe. the finance ministers meeting with greece now and the ecb and imf. tomorrow the leaders from across the european union happen to have the summit that kicks off
11:26 am
at 6:00 a.m. our time, new york, time. then people think a deal will be done potentially by monday when the finance ministers meet again. that's important because that would give them sufficient time to actually, if they do get a deal, to ratify it through the national parliaments and also an ecb meeting next what is that next wednesday, about the greek banks even if they don't get a deal, dave morgan says they don't feel the ecb will pull the rug from the banks. want to show you what has been said by ubs economist paul donovan. this may all be political posturing buts the risk is ordinary citizens take it seriously and react by pulling money from the greek banks. it's worth remembering that greek fire was a real threat and once ignited he's talking about runs on banks it may be very hard to distinguish. the wild card that's coming into this now, guys, is coming actually from the the discussions on the ukraine, on the edges of which the greek foreign minister has met the russian foreign minister. the russian foreign minister appears to be opening the door if the greek approached him to
11:27 am
actually some sort of bailout for greece. it's very left field. i don't know where that takes us, whether retter to rick and kind of noise, but it will concern people with all the other stuff we talk about. >> a weird dovetailing of two very -- >> look at cypress, how close they are to the russians. >> simon hobbs, a lot to watch there. >> microsoft outlook finally out for mobile and the big question is it any good? re/code's walt mossberg will join us with his review in a moment. dow down 31. sometimes romantic. there were tears in my eyes. and tears in my eyes. and so many little things that we learned were really the biggest things. through it all, we saved and had a retirement plan. and someone who listened and helped us along the way. because we always knew that someday the future would be the present. every someday needs a plan.
11:28 am
talk with us about your retirement today. so open an account with schwab. and when a market move affects, say, a cloud computing stock you're holding, we can help you decide what to do. with tools that help you see how market activity is affecting your positions. so when the time comes to decide whether to scale in or scale out... you can make your move, wherever you are. and start working on your next big idea. ♪
11:29 am
11:30 am
i'm sue herera. your news update at this hour. the fbi is reportedly looking into how fake tax returns were filed in 19 states using turbo tax software. "the wall street journal" says the bureau is focusing on a computer data breach allowed access to information and if that information was obtained from turbo tax. sycamore partners is in advance talks to buy chicos. the retailer could be valued at $3 million making it the largest leveraged buyout this year. and after nearly 40 years, the nation's top nutrition advisory panel decided to drop its warning about eating foods high ins they cholesterol. the committee finds cholesterol in diets no longer needs to be considered a, quote, nutrient of concern. end quote. coming up on "power lunch" the
11:31 am
at 1:30, an interview with the manager of morning star's gas utility fund up 19% over the past year. thanks your news update this hour. back to "squawk alley," carl? thank you, sue. microsoft's outlooks has been a staple on business pcs for years. now as the program heads to mobile devices will it see the same success? joining us re/code's co-executive editor walt moss burg. good morning to you. >> good morning, carl. >> you make it clear in the review, just the sound of the words outlook on mobile sounds a little bit weird to some folks. >> it sure does. i mean, outlook is a big, i would say some people think it's bloated, complicated app on windows and also on mac. and that's not, obviously, the kind of thing that works well on mobile. what microsoft did is bought a
11:32 am
third-party company that had something that looked like it could fit the name outlook and they did some quick reworking and put the name outlook on it and brought it out about a week ago. >> walt, jon fortt here. so this strategy from microsoft which we see in this kind of derived mobile outlook reminds me of the strategy apple pursued with itunes many years ago at first they were really foe cued on the mac platform and decided to make it more about itunes and ipod. microsoft seems to be doing something similar with productivity. based on how they're doing so far the acquisitions in the space, building on our people's platforms is it working for microsoft? >> well, you know, i think it is working although i would point out the biggest app they've released, which is word, excel, power point, microsoft office,
11:33 am
they built internally. so that was not one where they bought it from the outside, but -- and they have one note which i think they built internally. yeah, i mean, they are -- it's fascinating and i'm not sure what the business model is for this. they're struggling in their own mobile business not only the phones, but their software platform for phones and yet they're being aggressive about getting microsoft apps out there for ios and android. >> walt, from what satya nadella has told me recently it seems like the model is, they were already essentially giving away a lot of consumer apps because of piracy, because of the low prices that they needed so they figure in the cloud era they'll let people access it and think that will make them bring it in to work and businesses will pay. do you get the sense that these apps that microsoft has put out,
11:34 am
word, excel, power point, now outlook on mobile, would those inspire you as co-ceo of re/code to move your productivity operations on to microsoft? >> i don't know. i think they're good. i mean, the review i gave outlook this morning was a good review. because the way they've integrated calendar and e-mail and file, cloud storage in there because a of a number of other features and i and our review team gave office a good review but it's an uplittle battle for microsoft because a lot of younger smaller companies which did not have a legacy investment ins office on pshg cs are using google docs and stuff like that. so they have a battle on their hands in mobile, but i think the starting point has to be that the apps have to be good and
11:35 am
this is a good app. >> walt, we always hate to belabor apple but since you're here and know them so well, i'm just going through the news they've made over the past couple weeks, right? the bond sales, the solar farm, the promise of this distribution coming in april, the watch, apple pay on jetblue, have you ever seen them behaving and performing quite like this? >> they after i think we would all agree a period of some uncertainty after the death of steve jobs, i think they are firing on all cylinders. it's hard to think of a company of that size being able to grow and be as ac five as they are. a lot will be riding on the watch. a lot will be riding on the watch and we'll see what happens. >> more so than payments in your view? >> well, you know, i'm one of those people and i've said this
11:36 am
on this show before. i think the payments thing is being underestimated by people. it's potentially a big deal. right now it's just replacing kind of the last action in your payments process which is the credit card but they have the resources, both as in terms of the money they have and in terms of their position in retail, they have the resources to do a lot more with that if they chose to. i think that's something people need to keep a close eye on, but i still think, you know, apple is still a company which specializes in the combination of hardware, soft ware and services and the watch is in that space. so the watch has to succeed and i have predicted here that i don't think it will be a giant, you know, success, it will do very well right at the beginning because of the pent up demand and loyalty to apple but it's going to be a while before it becomes -- if it does -- before it becomes a big hit.
11:37 am
>> real quick -- >> has to succeed. >> real quick, walt, i think back to the last code conference and eddy cue there saying that apple had the biggest product cycle ever, i'm paraphrasing, raised a lot of eyebrows, people skeptical at the time, given where apple is right now have they delivered? >> i think they have a -- i mean we could argue about he said the biggest pipeline in 25 years, certainly not -- it's not bigger than the total pipeline of 25 years. it may be bigger than any particular point in 25 years, but yeah, i mean they've gone into the new categories, payments and the watch, they -- the sales of the iphone were unbelievable. the mac is back in a big way. so yeah, they're doing great right now. >> yes. he said, with the stock at almost 124. 123.98. walt, good to see you. we'll see you soon.
11:38 am
>> great to see you guys. >> thanks, walt mossberg. to dominic chu for a market flash. >> a billionaire media mogul john malone at it again. shares of lions gate are up as are starz it has entered into a stock swap agreement whereby john malone and his affiliates will trade a 4.5% stake in starz carrying a 14.5% voting stake in exchange for a 3.4% stake in lions gate and malone will join the board at lions gate studios. the deal is about content and distribution and possible strategic opportunities. back over to you guys. >> thanks, dom. up next, the state of washington, has a legal pot problem. apparently it has way too much. we'll tell you why in a moment. first, rick santelli what are you watching today? >> well, jon, we'll bring out the old red ribbon and tie it around some yield curve trades and also going to talk about issuance and talk about issuance in a negative way, you'll have to show up after the break to
11:39 am
see why. chasing performance can mean lower returns and fewer choices in retirement. know that proper allocation could help increase returns so you can enjoy that second home sooner. know the right financial planning can help you save for college and retirement. know where you stand with pnc total insight. a new investing and banking experience with personalized guidance and online tools. visit a branch, call or go online today. we are the thinkers. the job jugglers. the up all-nighters. and the ones who turn ideas into action. we've made our passions our life's work. we strive for the moments where we can say, "i did it!" ♪ we are entrepreneurs who started it all... with a signature. legalzoom has helped start over 1 million businesses, turning dreamers into business owners.
11:40 am
and we're here to help start yours.
11:41 am
coming up at the top of the hour, the $700 billion club. how apple got there and whether a trillion is the next stop. goldman's head of commodity research here exclusively on why retail investors are getting that trade all wrong. and pier 1 plummeting, herb greenberg says he saw it coming,
11:42 am
get all the trades coming up in 20 minutes. see you then. >> thanks, scott. in case you missed it forget furniture, ikea is taking on the emoji, swedish retailer unveiling its smartphone keyboard that comes with custom emoticons. help men and women communicate better. i wonder if there are meatball emojis by the way. >> on android and ios. >> stools, beds, home furnishing, no assembly required, thankfully. >> two desks and a fewton. >> like we don't have enough emojis already. let's get to the cme group. rick santelli has the santelli exchange. >> hi, carl. the yield curve has been a real home run along with those who have been long the treasury market really starting about a year ago in november in full earnest, but i want you to look at a chart. look at a chart starting a few days before january 30th. this is 10s minus 2s.
11:43 am
what you'll notice, it's been steepening. why would it be steepening? we covered for quite a while all the flattening that was going on and, of course, it was flattening, maybe initially the catalyst was removal of qe but normalization of rates was putting more sellers in the short end, more closely tied to the rates that the fed has direct control over over the rest of the curve. in essence what you had, short-end rates going up, flattening the curve. something has happened since that chart. on january 30th, of 2015, is when you put in the flattest 10s minus 2s, a bit under 1.20 after being the flattest it was in 31 months. if we look at the individual parts to that point, two-year notes now at 65, up 20 basis points. 10-year yields 1.64 to 2%, up 36 basis points. so even though the curve may be steepening, it still may be driven in essence by the notion there are still many who believe
11:44 am
that fed is going to normalize rate. why? because even though the curve has steep nd it's steepened with rates moving higher in both cases. definitely keep that distinction. another issue we want to talk about, throw the chart on the screen, what you're looking at, thank you, morgan stanley research, caver analytics, sovereign net issuance after central bank purchases for europe, uk, japan and the u.s. so negative net issuance. if you look at europe you see how negative rates are. you look at switzerland, negative rates, japan very low rates, nestle negative rates. now the dynamic was supposed to be that we're going to see low rates forever because net issuance is negative. but don't be so sure. the ill logic of the day and the way markets move in a logistics fashion, who holds positions, how central banks, paying for
11:45 am
reser reserves, all this about to go under review. i think it's very intuitive that rates will have a very difficult time climbing but remember, ill logic brings more ill logic. back to you. >> thanks so much, rick santelli. in chicago. over to washington where too much pot apparently can be a bad thing. just ask that state. our own jane wells is live in vancouver, washington, to explain. jane? >> kayla, it's a crazy story. there is too much legal marijuana in washington, too few places to sell it and because of high taxes, prices have had to come way down to compete with untaxed illegal and medical marijuana and growers like tom are facing bankruptcy. >> our garden is called the garden of the green sup here in washington. >> reporter: the problem is, there's been too much green sun in washington, unlike colorado, you can grow cannibis outdoors here and they had great growing weather. washington is being flooded by
11:46 am
cheaper illegal pot from oregon and california and the state gave out growers licenses than retail licenses creating an imbalance at least for now. >> a lot of these guys jumped into this thing and instead of going to the pros, they got their nephew who had been growing in their closet and said, we can do this and a lot -- there's a lot of nurse out there too. >> too much pot going on in washington. >> now watching all of this closely is one that runs g pharma labs. he's looking to expand into states like washington. >> we're going to buy facilities for pennies on the dollar, everything from the grow facilities to extraction machines to all that stuff, theiry're going to go belly up, many won't, but many will. >> it's gotten so bad he says some growers of legal pot are giving it away to reduce inventory and to build customer loyalty hoping they can hang on to the future. he hopes to hang on too.
11:47 am
guys, kayla, this farm is facing foreclosure. back to you. >> jane wells on the front lines of the pot economy, jane, our thanks as alwaysp. when we come back, the sharing economy meets hospital technology. medical devices on demand. coming up next. you can find a new frontier. there's nothing stopping you, and a lot helping you. technology that's with you always. this is our promise. it's never been better to wander, because wherever you go, you'll find us doing everything we can, so you can. there's confidence.
11:48 am
then there's trusting your vehicle maintenance to ford service confidence. our expertise, technology, and high quality parts mean your peace of mind. now you can get the works, a multi-point inspection with a synthetic blend oil change, tire rotation, brake inspection and more. $29.95 or less.
11:49 am
11:50 am
digital health start-ups are up-ending the way health care is delivered worldwide and one such start-up boston-based cohelo among fast companies innovative companies of 2015, seeks to save hospitals millions by allowing them to share underutilized medical equipment. joining us the founder and ceo, mark slotter. it's good to see you. >> thank you, kayla, for having me. >> tell us exactly how this works. >> sure. we're a technology company and we've built a platform that enables health systems in all the locations that make them up, so hospitals, surgery centers, if physician offices, to quantify all the assets they have and sort of quantity itfy utilization and enable their sister locations to tap into that excess capacity. when you think about how much
11:51 am
technology, how much is spent on the technology at these places it's pretty staggering and utilization rates are very much somewhere in the 40% range so there's a big opportunity for these guys to extract economic efficiency. >> you're essentially playing middle man, data base for hospitals to see what's available in the area, what they could tap into if? >> yes. right now it's a closed system. it becomes its own supply and demand system. cohelio is a turn key solution. it's a technology play but we have a third party ecosystem similar to how uber operates that specializes in relocating specialty medical equipment from hospital a to hospital b. >> what problem do you see this solving? obviously there's a budget question. a lot of hospitals refrin from buying some of the newer devices because they're so expensive but are there going to be more procedures recommended or what
11:52 am
do you see happening on the back of your product being available to hospitals? >> sure. it's twofold. on one side of the coin it's definitely an economic benefit. if a health system is able to aggregate consumship and demand and then deploy capital to satisfy based off regionalized needs they can eliminate a lot of low use redundant scenarios across their network and froe up capital and redeploy things in demand and also an access question. if i'm a patient and this happened to us down in florida people would have to travel a couple hours to get a certain type of procedure done, because that type of hospital didn't offer that treatment option for them. that's frustrating for us as patients and -- yep? >> mark, sorry to interrupt you there, but here's what i'm wondering. seems like a lot of businesses have enough of a read into their internal equipment and logistics they don't have to rely on someone else to tell them what
11:53 am
they have, where they have it and move from place to place. is this a deficiency in the way the health systems are run? do you see yourself selling software to your customers eventually to let them do more of this rather than have you do it? >> sure. so i think health systems are a fairly risky entity in and of themselves. the folks operating them are still trying to hone in and figure that out. when it's this huge sort of amalgamation of resources and a lot of complexity there, health systems should be focused on providing care not on building software and worry about logistical operations. they should be focused on the clinical side of things. that's what they're looking to us to do. >> always that moment where you combine tech and health and you start looking and worrying about things like privacy. how does that fit in, if at all? >> for us, it's -- so we don't capture the patient data world at all. no phi complications to have to worry about with our model.
11:54 am
it's about getting -- driving awareness at the clinician level on the front line that they have optionalty in the types of it technology they have. they just don't have to consume what's within the walls of their hospital today. they have a lot of options. >> mark, what's the next milestone cohelio is looking to? are you looking for a specific number of hospitals to sign up and get on board? are you looking to raise new funding? what's next for you? >> we're well capitalized and growing pretty quickly. we're in a couple dozen hospitals now. we're looking to be in several hundred by the fall, so we're growing quickly with the largest most recognizable groups in the market. we'll keep doing what we are doing and driving value into the system. >> we'll have you back. it's an interesting concept and hopefully one many are taking notice of. >> i appreciate having me, guys. thank you very much. >> mark slaughter founder of cohelio. >> dows has managed to shave some of its losses. market flash with dominic chu. >> carl, we're watching viacom shares taking a hit coming on
11:55 am
the heels of daily show host jon stewart decision to step down this year. the comic told his audience the news at tuesday's tapings that will levi yacom comedy central without three stars, stewart, stephen colbert and john oliver who has his own show on hbo. back over to you. >> it's a good point. trading worse than more media names. more interesting story the longer story looking at a chart, up with-year performance down about 19%. versus s&p up 13%. it's been a tough stock for a while. >> yeah. >> when we come back, apple at another all-time high hitting another major milestone. more on that in a moment.
11:56 am
11:57 am
11:58 am
not a lot working in the broader market. oil under pressure but apple once again continues to be the exception. stocks hitting another all-time high today. market cap above $700 billion, now 124.32. john legere of t-mobile tweeting moments ago are we really shocked that apple's market cap is above $700 billion.
11:59 am
#keepgoing. of course from somebody who has a vested interest in making sure apple does well. that's sort of the general new. >> i think so. with apple, there tends to be this as steve jobs used to call it or people who worked for him used to call it hero kind of roller coaster where people think apple's great or it's not so great. and right now, it's on apple's great. they are doing absolutely fantastically. if you had asked certainly two years ago a lot of people would have doubted they would be here. >> fascinating to look at the 20-year start, up 7,000 percent. similar track amazon, priceline, just astounding 62% growth in the last year in that stock. >>s a the journal said this morning, since the ipod was introduced in 2001 the market cap up 100 times. you don't see that often on a company this size. more earnings on the way tonight. tesla which we talked about earlier in the hour that's going to be interesting. estimate 56 cents and then, of course, there is cisco and
12:00 pm
whatever color john chambers will bring to the enterprise space. >> cisco is going to be interesting, watching it closely because of the fx headwinds. cisco has a lot of international business and we've seen some weakness in the traditional enterprise core from other companies in the earnings season. >> and keep our eye on europe. over to wapner and the half. all right. carl thanks so much. let's meet our starting line upfor today, stephen weiss the managing partner of short hills capital, josh brown, ceo of ritholtz wealth management and jon and pete najarian co-founders of optionmonster. our game plan, looks like this new world order what goldman's oil guru says about where crude is likely to go and retail investors are just getting it all wrong. it is a cnbc exclusive. pier none. as the stock does a


info Stream Only

Uploaded by TV Archive on